FLASH - Recap of 2015 Northlands race meet and 2016 Outlook

2015 Thoroughbred Meet Recap

The 2015 Northlands thoroughbred meet
began May 1 and concluded October
24. During the meet 1.75
days were lost due to track conditions. The following Schedule
denotes wagering, race days, races carded, starters and all information with
respect to purse payments.

NORTHLANDS PARK 2015 TB MEET

FINAL STATS:MAY
1 - OCTOBER 24, 2015

INCREASE/

WAGERING

2015

2014

(DECREASE)

%

ON TRACK

$6,067,428

$6,259,205

($191,777)

(3.20)

OFF TRACK

$15,407,862

$13,811,464

$1,596,398

10.40

TOTAL

$21,475,290

$20,070,669

$1,404,621

6.60

DAILY AVERAGE

$286,337

$274,941

$11,396

4.15

LIVE
RACE DAYS

74.25

73

1.25

1.71

RACES
CARDED

585

603

(18)

(6.50)

TOTAL
STARTERS

4,220

4,524

(304)

(5.10)

AVERAGE
STARTERS/RACE

7.21

7.50

(0.29)

(1.49)

PURSES

OVERNITE
PAYMENTS

$5,689,364

$5,861,315

($171,951)

(2.93)

STAKE
PAYMENTS

$2,045,000

$2,006,200

$38,800

1.89

PARTICIPATION
FEES

$143,280

$179,400

($36,120)

20.10

ALTA
BRED BONUS

$783,308

$472,508

$310,800

65.80

$8,660,952

$8,519,423

$141,529

1.67

DAILY AVERAGE:

OVERNITE
& PARTICIPATION FEES

$78,554

$82,749

($4,195)

(5.10)

Highlights for the meet:

In 2015 we raced 1.25 more days than in 2014, however, there were 18 less races carded during the meet –
a reflection of the decrease in horse population. The average starters per race
decreased to 7.21 from 7.50 in 2014.

Wagering on the product continued a
positive trend and performed to expectations with the overall total amounting
to $21.475 million compared to $20.070 million
last year which was an increase of $1.404
million or 6.6%.There was an
increase of nearly $1.6 million off track with on-track
wagering decreasing slightly by $191,000.The Northlands management was successful in selling
our signal to outsiders and it is obvious that our product is one that customers will
wager on.

The two (2) biggest events of the
racing calendar were again; the Canadian
Derby and Alberta Fall Classic Day.This year a total of $1,344,537 was wagered on the Derby card which is an increase of $87,000.Wagering
on this year’s Alberta Fall Classic day totaled $483,165 which was virtually
unchanged from the previous year.

Since less races were run in 2015, overnite
payments and participation fees decreased
by $208,000.Average overnite payments totaled $78,554
this year compared to $82,749 in 2014.The bright spot was the increased payments to owners of Alberta bred horses
finishing 1, 2 or 3 in qualifying races.This year payments made directly from the Breed Improvement Fund of $783,308 increased from $472,508 in
2014.Qualifying Alberta breds were
rewarded with a 37% bonus this year
vs. 24% last year.

In 2015 the Thoroughbred purse grant
from HRA totaled $5,274,000 compared
to $3,680,941 in 2014.Even though we received
an additional $1.6 million resulting from the opening the REC at Century Downs in Calgary after a seven (7) year
hiatus, a purse increase was not possible. A financial policy change instituted
by HRA for 2015 resulted in a decrease of the percentage allocation to “A” Thoroughbred
Horsemen from 43.5% to 38.5% of the
total purse grant. The Standardbred
breed as well as Community racing were the recipients of the 5% lost by this
Association. Had we received the same percentage allocation as had been received
from Day 1 of HRA’s existence, the additional $700,000 would have translated into a 10 – 15% increase in overnite payments.In 2015 The HBPA of Alberta did not dip into its
rainy day fund to support purses as was the case in 2014 when slightly over
$700,000 was injected internally to keep purses status quo. Your Board and management
continue to operate cautiously bearing in mind that funds on hand may be
required yet again down the road if there is an HRA funding shortfall.

Thankfully the HBPA/Northlands Arbitration
process came to a mutually agreed upon conclusion.Northlands did in fact make certain infrastructure
improvements to their Facility.Not all
of our requests for capital investment materialized, but in our view we did
make gains in this area during 2015 with additional projects to be undertaken
in 2016.

Changes to federal regulations,
protocol, and fees have made sourcing of foreign workers to work on the
backstretch virtually impossible. To date industry stakeholders have been
unsuccessful in affecting change to the current rules and regulations.As previously stated, not having qualified
workers employed at the racetrack is one of the greatest risks we face going
forward.

Finally, a new Board of Directors was
elected by the membership in August.We
welcome new Owner Directors Norm Castiglione &
Linda Smith and Trainer Directors Joan Petrowski &Tim Rycroft.Dr. Steve Smith, DVM was appointed
by the Board to serve as President for the three (3) year term.

2016 Outlook

As of this writing there are a number
of “balls in the air” which makes short and long-term planning very difficult
exercises.These issues must be
finalized prior to securing a future for the Alberta Thoroughbred industry:

As
the majority of you know the Gaming Revenue Agreement (MOU) with the Provincial
Government expires on March 31, 2016.During the past two (2) years HRA has assured
the industry that an extension to subject MOU would be executed.Suffice to say that as of this date it has
not happened.We understand that HRA continues
to pursue this path and they are optimistic that an extension will occur with
the industry being notified as soon as it happens.Without the sharing of gaming revenue by the
industry stakeholders generated at the Racing Entertainment Centers (RECs), the
current business model is not sustainable.

HRA
Purse funding is not known at this time.Funding and the extension of the MOU go hand in hand.

The
Northlands/HBPA Racing Contract expires on December
31, 2016.The HBPA is looking to
Northlands for a long term commitment to live horse racing so that we can once
again enter into a long term contract and provide our members certain stability.

Century
Casino opened for business on April 1,
2015 and reports are that the slot floor is performing as expected.The first standardbred meet recently
concluded.Century and the HBPA are in contract
negotiations to race at Century Downs in the fall of 2016.Certain infrastructure additions to the Facility
such as but not limited to stabling must be in place prior to thoroughbred
racing being conducted at Century Downs.The positive derived from negotiations thus far is that the Operator is
most anxious to conduct thoroughbred racing.

The current expectation is that
training will commence in Edmonton on or about March
15 as was the case this spring.Our Northlands
race meet will commence on May 6.At this time the number of live days that will be raced at Northlands
has not been determined.Again, this
Association will race a fall meet at Century Downs subject to construction and completion
of various infrastructure items which have been detailed in the Racing Agreement.

In September, 2015 the HBPA
implemented an incentive to owners of lower claiming horses to assist wintering
them for a return to racing at Northlands in 2016.Owners meeting certain criteria will be
eligible for a maximum $1,000 payment.Please refer to the details of the Program
which were posted on our website on September
17, 2015.

We will keep the membership informed
as developments occur.As is
customary, please address any questions, comments or concerns to the
undersigned.

Mat
Monaco – HBPA of Alberta

December
1, 2015

Copyright 2011 The Horsemens Benevolent and Protective Association of Alberta